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UK competition watchdog to crack down on green fashion claims

24 Sep '21
2 min read
Pic: Shutterstock
Pic: Shutterstock

To help businesses understand how to communicate their green credentials while reducing the risk of misleading shoppers, the UK Competition and Markets Authority (CMA) recently published the Green Claims Code. The code is part of a wider awareness campaign which the CMA launched ahead of COP26. It focuses on six principles based on existing consumer law.

The 2021 United Nations Climate Change Conference, also known as COP26, is the 26th such conference. It is scheduled to be held in Glasgow in Scotland between October 31 and November 12 under the presidency of the United Kingdom.

It is clear that firms making green claims “must not omit or hide important information” and “must consider the full life cycle of the product,” CMA said in a press release.

CMA is concerned about people being misled by environmental claims and also wants to ensure that businesses feel confident navigating the law in this area.

Following an initial bedding-in period, CMA will carry out a full review of misleading green claims, both on and offline, including claims made in store or on labelling, at the start of 2022.

CMA will prioritise which sectors to review in the coming months, which could include industries where consumers appear most concerned about misleading claims—textiles and fashion, travel and transport, and fast-moving consumer goods (food and beverages, beauty products and cleaning products). However, any sector where the CMA finds significant concerns could become a priority.

Where there is clear evidence of breaches of consumer law, the CMA may also take action before the formal review begins.

Last year, CMA announced that it was investigating the impact of green marketing on consumers, in line with its annual plan commitment. Working alongside other global authorities, it found that 40 per cent of green claims made online could be misleading, suggesting that thousands of businesses could be breaking the law and risking their reputation.

Fibre2Fashion News Desk (DS)

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